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Government by the People Act
Introduced May 24, 2024 · Last action May 24, 2024 — Referred to the Committee on House Administration, and in addition to the Committees on the Judiciary, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Summary
This legislation is called the Government by the People Act. It is being reviewed by a committee.
Full bill text
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8572 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8572
To direct the Federal Election Commission to establish a program under
which participating States shall provide individuals with vouchers
which may be used to make contributions to candidates for election for
the office of Representative in, or Delegate or Resident Commissioner
to, the Congress, to amend the Federal Election Campaign Act of 1971 to
establish a program to provide small dollar financing for candidates
for election for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 24, 2024
Mr. Sarbanes (for himself, Mr. Neguse, Ms. Clarke of New York, and Ms.
Pingree) introduced the following bill; which was referred to the
Committee on House Administration, and in addition to the Committees on
the Judiciary, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To direct the Federal Election Commission to establish a program under
which participating States shall provide individuals with vouchers
which may be used to make contributions to candidates for election for
the office of Representative in, or Delegate or Resident Commissioner
to, the Congress, to amend the Federal Election Campaign Act of 1971 to
establish a program to provide small dollar financing for candidates
for election for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Government by the
People Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--MY VOICE VOUCHER PILOT PROGRAM
Sec. 101. Establishment of pilot program.
Sec. 102. Voucher program described.
Sec. 103. Reports.
Sec. 104. Definitions.
TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS
Sec. 201. Benefits and eligibility requirements for candidates.
``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS
``Subtitle A--Benefits
``Sec. 501. Benefits for participating candidates.
``Sec. 502. Procedures for making payments.
``Sec. 503. Use of funds.
``Sec. 504. Qualified small dollar contributions described.
``Subtitle B--Eligibility and Certification
``Sec. 511. Eligibility.
``Sec. 512. Qualifying requirements.
``Sec. 513. Certification.
``Subtitle C--Requirements for Candidates Certified as Participating
Candidates
``Sec. 521. Contribution and expenditure requirements.
``Sec. 522. Administration of campaign.
``Sec. 523. Preventing unnecessary spending of public funds.
``Sec. 524. Remitting unspent funds after election.
``Subtitle D--Enhanced Match Support
``Sec. 531. Enhanced support for general election.
``Sec. 532. Eligibility.
``Sec. 533. Amount.
``Sec. 534. Waiver of authority to retain portion of unspent
funds after election.
``Subtitle E--Administrative Provisions
``Sec. 541. Freedom From Influence Fund.
``Sec. 542. Reviews and reports by Government Accountability
Office.
``Sec. 543. Administration by Commission.
``Sec. 544. Violations and penalties.
``Sec. 545. Appeals process.
``Sec. 546. Indexing of amounts.
``Sec. 547. Election cycle defined.
Sec. 202. Contributions and expenditures by multicandidate and
political party committees on behalf of
participating candidates.
Sec. 203. Prohibiting use of contributions by participating candidates
for purposes other than campaign for
election.
Sec. 204. Assessments against fines and penalties.
Sec. 205. Study and report on small dollar financing program.
Sec. 206. Effective date.
TITLE I--MY VOICE VOUCHER PILOT PROGRAM
SEC. 101. ESTABLISHMENT OF PILOT PROGRAM.
(a) Establishment.--The Federal Election Commission (hereafter in
this part referred to as the ``Commission'') shall establish a pilot
program under which the Commission shall select 3 eligible States to
operate a voucher pilot program which is described in section 102
during the program operation period.
(b) Eligibility of States.--A State is eligible to be selected to
operate a voucher pilot program under this part if, not later than 180
days after the beginning of the program application period, the State
submits to the Commission an application containing--
(1) information and assurances that the State will operate
a voucher program which contains the elements described in
section 102(a);
(2) information and assurances that the State will
establish fraud prevention mechanisms described in section
102(b);
(3) information and assurances that the State will
establish a commission to oversee and implement the program as
described in section 102(c);
(4) information and assurances that the State will carry
out a public information campaign as described in section
102(d);
(5) information and assurances that the State will submit
reports as required under section 103; and
(6) such other information and assurances as the Commission
may require.
(c) Selection of Participating States.--
(1) In general.--Not later than 1 year after the beginning
of the program application period, the Commission shall select
the 3 States which will operate voucher pilot programs under
this part.
(2) Criteria.--In selecting States for the operation of the
voucher pilot programs under this part, the Commission shall
apply such criteria and metrics as the Commission considers
appropriate to determine the ability of a State to operate the
program successfully, and shall attempt to select States in a
variety of geographic regions and with a variety of political
party preferences.
(3) No supermajority required for selection.--The selection
of States by the Commission under this subsection shall require
the approval of only half of the Members of the Commission.
(d) Duties of States During Program Preparation Period.--During the
program preparation period, each State selected to operate a voucher
pilot program under this part shall take such actions as may be
necessary to ensure that the State will be ready to operate the program
during the program operation period, and shall complete such actions
not later than 90 days before the beginning of the program operation
period.
(e) Termination.--Each voucher pilot program under this part shall
terminate as of the first day after the program operation period.
(f) Reimbursement of Costs.--
(1) Reimbursement.--Upon receiving the report submitted by
a State under section 103(a) with respect to an election cycle,
the Commission shall transmit a payment to the State in an
amount equal to the reasonable costs incurred by the State in
operating the voucher pilot program under this part during the
cycle.
(2) Source of funds.--Payments to States under the program
shall be made using amounts in the Freedom From Influence Fund
under section 541 of the Federal Election Campaign Act of 1971
(as added by section 201), hereafter referred to as the
``Fund''.
(3) Mandatory reduction of payments in case of insufficient
amounts in freedom from influence fund.--
(A) Advance audits by commission.--Not later than
90 days before the first day of each program operation
period, the Commission shall--
(i) audit the Fund to determine whether,
after first making payments to participating
candidates under title V of the Federal
Election Campaign Act of 1971 (as added by
section 201), the amounts remaining in the Fund
will be sufficient to make payments to States
under this part in the amounts provided under
this subsection; and
(ii) submit a report to Congress describing
the results of the audit.
(B) Reductions in amount of payments.--
(i) Automatic reduction on pro rata
basis.--If, on the basis of the audit described
in subparagraph (A), the Commission determines
that the amount anticipated to be available in
the Fund with respect to an election cycle
involved is not, or may not be, sufficient to
make payments to States under this part in the
full amount provided under this subsection, the
Commission shall reduce each amount which would
otherwise be paid to a State under this
subsection by such pro rata amount as may be
necessary to ensure that the aggregate amount
of payments anticipated to be made with respect
to the cycle will not exceed the amount
anticipated to be available for such payments
in the Fund with respect to such cycle.
(ii) Restoration of reductions in case of
availability of sufficient funds during
election cycle.--If, after reducing the amounts
paid to States with respect to an election
cycle under clause (i), the Commission
determines that there are sufficient amounts in
the Fund to restore the amount by which such
payments were reduced (or any portion thereof),
to the extent that such amounts are available,
the Commission may make a payment on a pro rata
basis to each such State with respect to the
cycle in the amount by which such State's
payments were reduced under clause (i) (or any
portion thereof, as the case may be).
(iii) No use of amounts from other
sources.--In any case in which the Commission
determines that there are insufficient moneys
in the Fund to make payments to States under
this part, moneys shall not be made available
from any other source for the purpose of making
such payments.
(4) Cap on amount of payment.--The aggregate amount of
payments made to any State with respect to any program
operation period may not exceed $10,000,000. If the State
determines that the maximum payment amount under this paragraph
with respect to the program operation period involved is not,
or may not be, sufficient to cover the reasonable costs
incurred by the State in operating the program under this part
for such period, the State shall reduce the amount of the
voucher provided to each qualified individual by such pro rata
amount as may be necessary to ensure that the reasonable costs
incurred by the State in operating the program will not exceed
the amount paid to the State with respect to such period.
SEC. 102. VOUCHER PROGRAM DESCRIBED.
(a) General Elements of Program.--
(1) Elements described.--The elements of a voucher pilot
program operated by a State under this part are as follows:
(A) The State shall provide each qualified
individual upon the individual's request with a voucher
worth $25 to be known as a ``My Voice Voucher'' during
the election cycle which will be assigned a routing
number and which at the option of the individual will
be provided in either paper or electronic form.
(B) Using the routing number assigned to the My
Voice Voucher, the individual may submit the My Voice
Voucher in either electronic or paper form to qualified
candidates for election for the office of
Representative in, or Delegate or Resident Commissioner
to, the Congress and allocate such portion of the value
of the My Voice Voucher in increments of $5 as the
individual may select to any such candidate.
(C) If the candidate transmits the My Voice Voucher
to the Commission, the Commission shall pay the
candidate the portion of the value of the My Voice
Voucher that the individual allocated to the candidate,
which shall be considered a contribution by the
individual to the candidate for purposes of the Federal
Election Campaign Act of 1971.
(2) Designation of qualified individuals.--For purposes of
paragraph (1)(A), a ``qualified individual'' with respect to a
State means an individual--
(A) who is a resident of the State;
(B) who will be of voting age as of the date of the
election for the candidate to whom the individual
submits a My Voice Voucher; and
(C) who is not prohibited under Federal law from
making contributions to candidates for election for
Federal office.
(3) Treatment as contribution to candidate.--For purposes
of the Federal Election Campaign Act of 1971, the submission of
a My Voice Voucher to a candidate by an individual shall be
treated as a contribution to the candidate by the individual in
the amount of the portion of the value of the Voucher that the
individual allocated to the candidate.
(b) Fraud Prevention Mechanism.--In addition to the elements
described in subsection (a), a State operating a voucher pilot program
under this part shall permit an individual to revoke a My Voice Voucher
not later than 2 days after submitting the My Voice Voucher to a
candidate.
(c) Oversight Commission.--In addition to the elements described in
subsection (a), a State operating a voucher pilot program under this
part shall establish a commission or designate an existing entity to
oversee and implement the program in the State, except that no such
commission or entity may be comprised of elected officials.
(d) Public Information Campaign.--In addition to the elements
described in subsection (a), a State operating a voucher pilot program
under this part shall carry out a public information campaign to
disseminate awareness of the program among qualified individuals.
SEC. 103. REPORTS.
(a) Preliminary Report.--Not later than 6 months after the first
election cycle of the program operation period, a State which operates
a voucher pilot program under this part shall submit a report to the
Commission analyzing the operation and effectiveness of the program
during the cycle and including such other information as the Commission
may require.
(b) Final Report.--Not later than 6 months after the end of the
program operation period, the State shall submit a final report to the
Commission analyzing the operation and effectiveness of the program and
including such other information as the Commission may require.
(c) Study and Report on Impact and Effectiveness of Voucher
Programs.--
(1) Study.--The Federal Election Commission shall conduct a
study on the efficacy of political voucher programs, including
the program under this part and other similar programs, in
expanding and diversifying the pool of individuals who
participate in the electoral process, including those who
participate as donors and those who participate as candidates.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Commission shall publish and submit
to Congress a report on the study conducted under subsection
(a), and shall include in the report such recommendations as
the Commission considers appropriate which would enable
political voucher programs to be implemented on a national
scale.
SEC. 104. DEFINITIONS.
(a) Election Cycle.--In this part, the term ``election cycle''
means the period beginning on the day after the date of the most recent
regularly scheduled general election for Federal office and ending on
the date of the next regularly scheduled general election for Federal
office.
(b) Definitions Relating to Periods.--In this part, the following
definitions apply:
(1) Program application period.--The term ``program
application period'' means the first election cycle which
begins after the date of the enactment of this Act.
(2) Program preparation period.--The term ``program
preparation period'' means the first election cycle which
begins after the program application period.
(3) Program operation period.--The term ``program operation
period'' means the first 2 election cycles which begin after
the program preparation period.
TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS
SEC. 201. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR CANDIDATES.
The Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.)
is amended by adding at the end the following:
``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS
``Subtitle A--Benefits
``SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES.
``(a) In General.--If a candidate for election to the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress is certified as a participating candidate under this title
with respect to an election for such office, the candidate shall be
entitled to payments as provided under this title.
``(b) Amount of Payment.--The amount of a payment made under this
title shall be equal to 600 percent of the amount of qualified small
dollar contributions received by the candidate since the most recent
payment made to the candidate under this title during the election
cycle, without regard to whether or not the candidate received any of
the contributions before, during, or after the Small Dollar Democracy
qualifying period applicable to the candidate under section 511(c).
``(c) Limit on Aggregate Amount of Payments.--The aggregate amount
of payments made to a participating candidate with respect to an
election cycle under this title may not exceed 50 percent of the
average of the 20 greatest amounts of disbursements made by the
authorized committees of any winning candidate for the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress during the most recent election cycle, rounded to the nearest
$100,000.
``SEC. 502. PROCEDURES FOR MAKING PAYMENTS.
``(a) In General.--The Commission shall make a payment under
section 501 to a candidate who is certified as a participating
candidate upon receipt from the candidate of a request for a payment
which includes--
``(1) a statement of the number and amount of qualified
small dollar contributions received by the candidate since the
most recent payment made to the candidate under this title
during the election cycle;
``(2) a statement of the amount of the payment the
candidate anticipates receiving with respect to the request;
``(3) a statement of the total amount of payments the
candidate has received under this title as of the date of the
statement; and
``(4) such other information and assurances as the
Commission may require.
``(b) Restrictions on Submission of Requests.--A candidate may not
submit a request under subsection (a) unless each of the following
applies:
``(1) The amount of the qualified small dollar
contributions in the statement referred to in subsection (a)(1)
is equal to or greater than $5,000, unless the request is
submitted during the 30-day period which ends on the date of a
general election.
``(2) The candidate did not receive a payment under this
title during the 7-day period which ends on the date the
candidate submits the request.
``(c) Time of Payment.--The Commission shall, in coordination with
the Secretary of the Treasury, take such steps as may be necessary to
ensure that the Secretary is able to make payments under this section
from the Treasury not later than 2 business days after the receipt of a
request submitted under subsection (a).
``SEC. 503. USE OF FUNDS.
``(a) Use of Funds for Authorized Campaign Expenditures.--A
candidate shall use payments made under this title, including payments
provided with respect to a previous election cycle which are withheld
from remittance to the Commission in accordance with section 524(a)(2),
only for making direct payments for the receipt of goods and services
which constitute authorized expenditures (as determined in accordance
with title III) in connection with the election cycle involved.
``(b) Prohibiting Use of Funds for Legal Expenses, Fines, or
Penalties.--Notwithstanding title III, a candidate may not use payments
made under this title for the payment of expenses incurred in
connection with any action, claim, or other matter before the
Commission or before any court, hearing officer, arbitrator, or other
dispute resolution entity, or for the payment of any fine or civil
monetary penalty.
``SEC. 504. QUALIFIED SMALL DOLLAR CONTRIBUTIONS DESCRIBED.
``(a) In General.--In this title, the term `qualified small dollar
contribution' means, with respect to a candidate and the authorized
committees of a candidate, a contribution that meets the following
requirements:
``(1) The contribution is in an amount that is--
``(A) not less than $1; and
``(B) not more than $200.
``(2)(A) The contribution is made directly by an individual
to the candidate or an authorized committee of the candidate
and is not--
``(i) forwarded from the individual making the
contribution to the candidate or committee by another
person; or
``(ii) received by the candidate or committee with
the knowledge that the contribution was made at the
request, suggestion, or recommendation of another
person.
``(B) In this paragraph--
``(i) the term `person' does not include an
individual (other than an individual described in
section 304(i)(7) of the Federal Election Campaign Act
of 1971), a political committee of a political party,
or any political committee which is not a separate
segregated fund described in section 316(b) of the
Federal Election Campaign Act of 1971 and which does
not make contributions or independent expenditures,
does not engage in lobbying activity under the Lobbying
Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), and is
not established by, controlled by, or affiliated with a
registered lobbyist under such Act, an agent of a
registered lobbyist under such Act, or an organization
which retains or employs a registered lobbyist under
such Act; and
``(ii) a contribution is not `made at the request,
suggestion, or recommendation of another person' solely
on the grounds that the contribution is made in
response to information provided to the individual
making the contribution by any person, so long as the
candidate or authorized committee does not know the
identity of the person who provided the information to
such individual.
``(3) The individual who makes the contribution does not
make contributions to the candidate or the authorized
committees of the candidate with respect to the election
involved in an aggregate amount that exceeds the amount
described in paragraph (1)(B), or any contribution to the
candidate or the authorized committees of the candidate with
respect to the election involved that otherwise is not a
qualified small dollar contribution.
``(b) Treatment of My Voice Vouchers.--Any payment received by a
candidate and the authorized committees of a candidate which consists
of a My Voice Voucher under the Government By the People Act of 2021
shall be considered a qualified small dollar contribution for purposes
of this title, so long as the individual making the payment meets the
requirements of paragraphs (2) and (3) of subsection (a).
``(c) Restriction on Subsequent Contributions.--
``(1) Prohibiting donor from making subsequent nonqualified
contributions during election cycle.--
``(A) In general.--An individual who makes a
qualified small dollar contribution to a candidate or
the authorized committees of a candidate with respect
to an election may not make any subsequent contribution
to such candidate or the authorized committees of such
candidate with respect to the election cycle which is
not a qualified small dollar contribution.
``(B) Exception for contributions to candidates who
voluntarily withdraw from participation during
qualifying period.--Subparagraph (A) does not apply
with respect to a contribution made to a candidate who,
during the Small Dollar Democracy qualifying period
described in section 511(c), submits a statement to the
Commission under section 513(c) to voluntarily withdraw
from participating in the program under this title.
``(2) Treatment of subsequent nonqualified contributions.--
If, notwithstanding the prohibition described in paragraph (1),
an individual who makes a qualified small dollar contribution
to a candidate or the authorized committees of a candidate with
respect to an election makes a subsequent contribution to such
candidate or the authorized committees of such candidate with
respect to the election which is prohibited under paragraph (1)
because it is not a qualified small dollar contribution, the
candidate may take one of the following actions:
``(A) Not later than 2 weeks after receiving the
contribution, the candidate may return the subsequent
contribution to the individual. In the case of a
subsequent contribution which is not a qualified small
dollar contribution because the contribution fails to
meet the requirements of paragraph (3) of subsection
(a) (relating to the aggregate amount of contributions
made to the candidate or the authorized committees of
the candidate by the individual making the
contribution), the candidate may return an amount equal
to the difference between the amount of the subsequent
contribution and the amount described in paragraph
(1)(B) of subsection (a).
``(B) The candidate may retain the subsequent
contribution, so long as not later than 2 weeks after
receiving the subsequent contribution, the candidate
remits to the Commission for deposit in the Freedom
From Influence Fund under section 541 an amount equal
to any payments received by the candidate under this
title which are attributable to the qualified small
dollar contribution made by the individual involved.
``(3) No effect on ability to make multiple
contributions.--Nothing in this section may be construed to
prohibit an individual from making multiple qualified small
dollar contributions to any candidate or any number of
candidates, so long as each contribution meets each of the
requirements of paragraphs (1), (2), and (3) of subsection (a).
``(d) Notification Requirements for Candidates.--
``(1) Notification.--Each authorized committee of a
candidate who seeks to be a participating candidate under this
title shall provide the following information in any materials
for the solicitation of contributions, including any internet
site through which individuals may make contributions to the
committee:
``(A) A statement that if the candidate is
certified as a participating candidate under this
title, the candidate will receive matching payments in
an amount which is based on the total amount of
qualified small dollar contributions received.
``(B) A statement that a contribution which meets
the requirements set forth in subsection (a) shall be
treated as a qualified small dollar contribution under
this title.
``(C) A statement that if a contribution is treated
as qualified small dollar contribution under this
title, the individual who makes the contribution may
not make any contribution to the candidate or the
authorized committees of the candidate during the
election cycle which is not a qualified small dollar
contribution.
``(2) Alternative methods of meeting requirements.--An
authorized committee may meet the requirements of paragraph
(1)--
``(A) by including the information described in
paragraph (1) in the receipt provided under section
512(b)(3) to a person making a qualified small dollar
contribution; or
``(B) by modifying the information it provides to
persons making contributions which is otherwise
required under title III (including information it
provides through the internet).
``Subtitle B--Eligibility and Certification
``SEC. 511. ELIGIBILITY.
``(a) In General.--A candidate for the office of Representative in,
or Delegate or Resident Commissioner to, the Congress is eligible to be
certified as a participating candidate under this title with respect to
an election if the candidate meets the following requirements:
``(1) The candidate files with the Commission a statement
of intent to seek certification as a participating candidate.
``(2) The candidate meets the qualifying requirements of
section 512.
``(3) The candidate files with the Commission a statement
certifying that the authorized committees of the candidate meet
the requirements of section 504(d).
``(4) Not later than the last day of the Small Dollar
Democracy qualifying period, the candidate files with the
Commission an affidavit signed by the candidate and the
treasurer of the candidate's principal campaign committee
declaring that the candidate--
``(A) has complied and, if certified, will comply
with the contribution and expenditure requirements of
section 521;
``(B) if certified, will run only as a
participating candidate for all elections for the
office that such candidate is seeking during that
election cycle; and
``(C) has either qualified or will take steps to
qualify under State law to be on the ballot.
``(b) General Election.--Notwithstanding subsection (a), a
candidate shall not be eligible to be certified as a participating
candidate under this title for a general election or a general runoff
election unless the candidate's party nominated the candidate to be
placed on the ballot for the general election or the candidate is
otherwise qualified to be on the ballot under State law.
``(c) Small Dollar Democracy Qualifying Period Defined.--The term
`Small Dollar Democracy qualifying period' means, with respect to any
candidate for an office, the 180-day period (during the election cycle
for such office) which begins on the date on which the candidate files
a statement of intent under section 511(a)(1), except that such period
may not continue after the date that is 30 days before the date of the
general election for the office.
``SEC. 512. QUALIFYING REQUIREMENTS.
``(a) Receipt of Qualified Small Dollar Contributions.--A candidate
for the office of Representative in, or Delegate or Resident
Commissioner to, the Congress meets the requirement of this section if,
during the Small Dollar Democracy qualifying period described in
section 511(c), each of the following occurs:
``(1) Not fewer than 1,000 individuals make a qualified
small dollar contribution to the candidate.
``(2) The candidate obtains a total dollar amount of
qualified small dollar contributions which is equal to or
greater than $50,000.
``(b) Requirements Relating to Receipt of Qualified Small Dollar
Contribution.--Each qualified small dollar contribution--
``(1) may be made by means of a personal check, money
order, debit card, credit card, electronic payment account, or
any other method deemed appropriate by the Commission;
``(2) shall be accompanied by a signed statement (or, in
the case of a contribution made online or through other
electronic means, an electronic equivalent) containing the
contributor's name and address; and
``(3) shall be acknowledged by a receipt that is sent to
the contributor with a copy (in paper or electronic form) kept
by the candidate for the Commission.
``(c) Verification of Contributions.--The Commission shall
establish procedures for the auditing and verification of the
contributions received and expenditures made by participating
candidates under this title, including procedures for random audits, to
ensure that such contributions and expenditures meet the requirements
of this title.
``SEC. 513. CERTIFICATION.
``(a) Deadline and Notification.--
``(1) In general.--Not later than 5 business days after a
candidate files an affidavit under section 511(a)(4), the
Commission shall--
``(A) determine whether or not the candidate meets
the requirements for certification as a participating
candidate;
``(B) if the Commission determines that the
candidate meets such requirements, certify the
candidate as a participating candidate; and
``(C) notify the candidate of the Commission's
determination.
``(2) Deemed certification for all elections in election
cycle.--If the Commission certifies a candidate as a
participating candidate with respect to the first election of
the election cycle involved, the Commission shall be deemed to
have certified the candidate as a participating candidate with
respect to all subsequent elections of the election cycle.
``(b) Revocation of Certification.--
``(1) In general.--The Commission shall revoke a
certification under subsection (a) if--
``(A) a candidate fails to qualify to appear on the
ballot at any time after the date of certification
(other than a candidate certified as a participating
candidate with respect to a primary election who fails
to qualify to appear on the ballot for a subsequent
election in that election cycle);
``(B) a candidate ceases to be a candidate for the
office involved, as determined on the basis of an
official announcement by an authorized committee of the
candidate or on the basis of a reasonable determination
by the Commission; or
``(C) a candidate otherwise fails to comply with
the requirements of this title, including any
regulatory requirements prescribed by the Commission.
``(2) Existence of criminal sanction.--The Commission shall
revoke a certification under subsection (a) if a penalty is
assessed against the candidate under section 309(d) with
respect to the election.
``(3) Effect of revocation.--If a candidate's certification
is revoked under this subsection--
``(A) the candidate may not receive payments under
this title during the remainder of the election cycle
involved; and
``(B) in the case of a candidate whose
certification is revoked pursuant to subparagraph (A)
or subparagraph (C) of paragraph (1)--
``(i) the candidate shall repay to the
Freedom From Influence Fund established under
section 541 an amount equal to the payments
received under this title with respect to the
election cycle involved plus interest (at a
rate determined by the Commission on the basis
of an appropriate annual percentage rate for
the month involved) on any such amount
received; and
``(ii) the candidate may not be certified
as a participating candidate under this title
with respect to the next election cycle.
``(4) Prohibiting participation in future elections for
candidates with multiple revocations.--If the Commission
revokes the certification of an individual as a participating
candidate under this title pursuant to subparagraph (A) or
subparagraph (C) of paragraph (1) a total of 3 times, the
individual may not be certified as a participating candidate
under this title with respect to any subsequent election.
``(c) Voluntary Withdrawal From Participating During Qualifying
Period.--At any time during the Small Dollar Democracy qualifying
period described in section 511(c), a candidate may withdraw from
participation in the program under this title by submitting to the
Commission a statement of withdrawal (without regard to whether or not
the Commission has certified the candidate as a participating candidate
under this title as of the time the candidate submits such statement),
so long as the candidate has not submitted a request for payment under
section 502.
``(d) Participating Candidate Defined.--In this title, a
`participating candidate' means a candidate for the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress who is certified under this section as eligible to receive
benefits under this title.
``Subtitle C--Requirements for Candidates Certified as Participating
Candidates
``SEC. 521. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.
``(a) Permitted Sources of Contributions and Expenditures.--Except
as provided in subsection (c), a participating candidate with respect
to an election shall, with respect to all elections occurring during
the election cycle for the office involved, accept no contributions
from any source and make no expenditures from any amounts, other than
the following:
``(1) Qualified small dollar contributions.
``(2) Payments under this title.
``(3) Contributions from political committees established
and maintained by a national or State political party, subject
to the applicable limitations of section 315.
``(4) Subject to subsection (b), personal funds of the
candidate or of any immediate family member of the candidate
(other than funds received through qualified small dollar
contributions).
``(5) Contributions from individuals who are otherwise
permitted to make contributions under this Act, subject to the
applicable limitations of section 315, except that the
aggregate amount of contributions a participating candidate may
accept from any individual with respect to any election during
the election cycle may not exceed $1,000.
``(6) Contributions from multicandidate political
committees, subject to the applicable limitations of section
315.
``(b) Special Rules for Personal Funds.--
``(1) Limit on amount.--A candidate who is certified as a
participating candidate may use personal funds (including
personal funds of any immediate family member of the candidate)
so long as--
``(A) the aggregate amount used with respect to the
election cycle (including any period of the cycle
occurring prior to the candidate's certification as a
participating candidate) does not exceed $50,000; and
``(B) the funds are used only for making direct
payments for the receipt of goods and services which
constitute authorized expenditures in connection with
the election cycle involved.
``(2) Immediate family member defined.--In this subsection,
the term `immediate family member' means, with respect to a
candidate--
``(A) the candidate's spouse;
``(B) a child, stepchild, parent, grandparent,
brother, half-brother, sister, or half-sister of the
candidate or the candidate's spouse; and
``(C) the spouse of any person described in
subparagraph (B).
``(c) Exceptions.--
``(1) Exception for contributions received prior to filing
of statement of intent.--A candidate who has accepted
contributions that are not described in subsection (a) is not
in violation of subsection (a), but only if all such
contributions are--
``(A) returned to the contributor;
``(B) submitted to the Commission for deposit in
the Freedom From Influence Fund established under
section 541; or
``(C) spent in accordance with paragraph (2).
``(2) Exception for expenditures made prior to filing of
statement of intent.--If a candidate has made expenditures
prior to the date the candidate files a statement of intent
under section 511(a)(1) that the candidate is prohibited from
making under subsection (a) or subsection (b), the candidate is
not in violation of such subsection if the aggregate amount of
the prohibited expenditures is less than the amount referred to
in section 512(a)(2) (relating to the total dollar amount of
qualified small dollar contributions which the candidate is
required to obtain) which is applicable to the candidate.
``(3) Exception for campaign surpluses from a previous
election.--Notwithstanding paragraph (1), unexpended
contributions received by the candidate or an authorized
committee of the candidate with respect to a previous election
may be retained, but only if the candidate places the funds in
escrow and refrains from raising additional funds for or
spending funds from that account during the election cycle in
which a candidate is a participating candidate.
``(4) Exception for contributions received before the
effective date of this title.--Contributions received and
expenditures made by the candidate or an authorized committee
of the candidate prior to the effective date of this title
shall not constitute a violation of subsection (a) or (b).
Unexpended contributions shall be treated the same as campaign
surpluses under paragraph (3), and expenditures made shall
count against the limit in paragraph (2).
``(d) Special Rule for Coordinated Party Expenditures.--For
purposes of this section, a payment made by a political party in
coordination with a participating candidate shall not be treated as a
contribution to or as an expenditure made by the participating
candidate.
``(e) Prohibition on Joint Fundraising Committees.--
``(1) Prohibition.--An authorized committee of a candidate
who is certified as a participating candidate under this title
with respect to an election may not establish a joint
fundraising committee with a political committee other than
another authorized committee of the candidate.
``(2) Status of existing committees for prior elections.--
If a candidate established a joint fundraising committee
described in paragraph (1) with respect to a prior election for
which the candidate was not certified as a participating
candidate under this title and the candidate does not terminate
the committee, the candidate shall not be considered to be in
violation of paragraph (1) so long as that joint fundraising
committee does not receive any contributions or make any
disbursements during the election cycle for which the candidate
is certified as a participating candidate under this title.
``(f) Prohibition on Leadership PACs.--
``(1) Prohibition.--A candidate who is certified as a
participating candidate under this title with respect to an
election may not associate with, establish, finance, maintain,
or control a leadership PAC.
``(2) Status of existing leadership pacs.--If a candidate
established, financed, maintained, or controlled a leadership
PAC prior to being certified as a participating candidate under
this title and the candidate does not terminate the leadership
PAC, the candidate shall not be considered to be in violation
of paragraph (1) so long as the leadership PAC does not receive
any contributions or make any disbursements during the election
cycle for which the candidate is certified as a participating
candidate under this title.
``(3) Leadership pac defined.--In this subsection, the term
`leadership PAC' has the meaning given such term in section
304(i)(8)(B).
``SEC. 522. ADMINISTRATION OF CAMPAIGN.
``(a) Separate Accounting for Various Permitted Contributions.--
Each authorized committee of a candidate certified as a participating
candidate under this title--
``(1) shall provide for separate accounting of each type of
contribution described in section 521(a) which is received by
the committee; and
``(2) shall provide for separate accounting for the
payments received under this title.
``(b) Enhanced Disclosure of Information on Donors.--
``(1) Mandatory identification of individuals making
qualified small dollar contributions.--Each authorized
committee of a participating candidate under this title shall,
in accordance with section 304(b)(3)(A), include in the reports
the committee submits under section 304 the identification of
each person who makes a qualified small dollar contribution to
the committee.
``(2) Mandatory disclosure through internet.--Each
authorized committee of a participating candidate under this
title shall ensure that all information reported to the
Commission under this Act with respect to contributions and
expenditures of the committee is available to the public on the
internet (whether through a site established for purposes of
this subsection, a hyperlink on another public site of the
committee, or a hyperlink on a report filed electronically with
the Commission) in a searchable, sortable, and downloadable
manner.
``SEC. 523. PREVENTING UNNECESSARY SPENDING OF PUBLIC FUNDS.
``(a) Mandatory Spending of Available Private Funds.--An authorized
committee of a candidate certified as a participating candidate under
this title may not make any expenditure of any payments received under
this title in any amount unless the committee has made an expenditure
in an equivalent amount of funds received by the committee which are
described in paragraphs (1), (3), (4), (5), and (6) of section 521(a).
``(b) Limitation.--Subsection (a) applies to an authorized
committee only to the extent that the funds referred to in such
subsection are available to the committee at the time the committee
makes an expenditure of a payment received under this title.
``SEC. 524. REMITTING UNSPENT FUNDS AFTER ELECTION.
``(a) Remittance Required.--Not later than the date that is 180
days after the last election for which a candidate certified as a
participating candidate qualifies to be on the ballot during the
election cycle involved, such participating candidate shall remit to
the Commission for deposit in the Freedom From Influence Fund
established under section 541 an amount equal to the balance of the
payments received under this title by the authorized committees of the
candidate which remain unexpended as of such date.
``(b) Permitting Candidates Participating in Next Election Cycle To
Retain Portion of Unspent Funds.--Notwithstanding subsection (a), a
participating candidate may withhold not more than $100,000 from the
amount required to be remitted under subsection (a) if the candidate
files a signed affidavit with the Commission that the candidate will
seek certification as a participating candidate with respect to the
next election cycle, except that the candidate may not use any portion
of the amount withheld until the candidate is certified as a
participating candidate with respect to that next election cycle. If
the candidate fails to seek certification as a participating candidate
prior to the last day of the Small Dollar Democracy qualifying period
for the next election cycle (as described in section 511), or if the
Commission notifies the candidate of the Commission's determination
does not meet the requirements for certification as a participating
candidate with respect to such cycle, the candidate shall immediately
remit to the Commission the amount withheld.
``Subtitle D--Enhanced Match Support
``SEC. 531. ENHANCED SUPPORT FOR GENERAL ELECTION.
``(a) Availability of Enhanced Support.--In addition to the
payments made under subtitle A, the Commission shall make an additional
payment to an eligible candidate under this subtitle.
``(b) Use of Funds.--A candidate shall use the additional payment
under this subtitle only for authorized expenditures in connection with
the election involved.
``SEC. 532. ELIGIBILITY.
``(a) In General.--A candidate is eligible to receive an additional
payment under this subtitle if the candidate meets each of the
following requirements:
``(1) The candidate is on the ballot for the general
election for the office the candidate seeks.
``(2) The candidate is certified as a participating
candidate under this title with respect to the election.
``(3) During the enhanced support qualifying period, the
candidate receives qualified small dollar contributions in a
total amount of not less than $50,000.
``(4) During the enhanced support qualifying period, the
candidate submits to the Commission a request for the payment
which includes--
``(A) a statement of the number and amount of
qualified small dollar contributions received by the
candidate during the enhanced support qualifying
period;
``(B) a statement of the amount of the payment the
candidate anticipates receiving with respect to the
request; and
``(C) such other information and assurances as the
Commission may require.
``(5) After submitting a request for the additional payment
under paragraph (4), the candidate does not submit any other
application for an additional payment under this subtitle.
``(b) Enhanced Support Qualifying Period Described.--In this
subtitle, the term `enhanced support qualifying period' means, with
respect to a general election, the period which begins 60 days before
the date of the election and ends 14 days before the date of the
election.
``SEC. 533. AMOUNT.
``(a) In General.--Subject to subsection (b), the amount of the
additional payment made to an eligible candidate under this subtitle
shall be an amount equal to 50 percent of--
``(1) the amount of the payment made to the candidate under
section 501(b) with respect to the qualified small dollar
contributions which are received by the candidate during the
enhanced support qualifying period (as included in the request
submitted by the candidate under section 532(a)(4)); or
``(2) in the case of a candidate who is not eligible to
receive a payment under section 501(b) with respect to such
qualified small dollar contributions because the candidate has
reached the limit on the aggregate amount of payments under
subtitle A for the election cycle under section 501(c), the
amount of the payment which would have been made to the
candidate under section 501(b) with respect to such qualified
small dollar contributions if the candidate had not reached
such limit.
``(b) Limit.--The amount of the additional payment determined under
subsection (a) with respect to a candidate may not exceed $500,000.
``(c) No Effect on Aggregate Limit.--The amount of the additional
payment made to a candidate under this subtitle shall not be included
in determining the aggregate amount of payments made to a participating
candidate with respect to an election cycle under section 501(c).
``SEC. 534. WAIVER OF AUTHORITY TO RETAIN PORTION OF UNSPENT FUNDS
AFTER ELECTION.
``Notwithstanding section 524(a)(2), a candidate who receives an
additional payment under this subtitle with respect to an election is
not permitted to withhold any portion from the amount of unspent funds
the candidate is required to remit to the Commission under section
524(a)(1).
``Subtitle E--Administrative Provisions
``SEC. 541. FREEDOM FROM INFLUENCE FUND.
``(a) Establishment.--There is established in the Treasury a fund
to be known as the `Freedom From Influence Fund'.
``(b) Amounts Held by Fund.--The Fund shall consist of the
following amounts:
``(1) Assessments against fines, settlements, and
penalties.--Amounts transferred under section 3015 of title 18,
United States Code, section 9706 of title 31, United States
Code, and section 6761 of the Internal Revenue Code of 1986.
``(2) Deposits.--Amounts deposited into the Fund under--
``(A) section 521(c)(1)(B) (relating to exceptions
to contribution requirements);
``(B) section 523 (relating to remittance of unused
payments from the Fund); and
``(C) section 544 (relating to violations).
``(c) Use of Fund To Make Payments to Participating Candidates.--
``(1) Payments to participating candidates.--Amounts in the
Fund shall be available without further appropriation or fiscal
year limitation to make payments to participating candidates as
provided in this title.
``(2) Mandatory reduction of payments in case of
insufficient amounts in fund.--
``(A) Advance audits by commission.--Not later than
90 days before the first day of each election cycle
(beginning with the first election cycle that begins
after the date of the enactment of this title), the
Commission shall--
``(i) audit the Fund to determine whether
the amounts in the Fund will be sufficient to
make payments to participating candidates in
the amounts provided in this title during such
election cycle; and
``(ii) submit a report to Congress
describing the results of the audit.
``(B) Reductions in amount of payments.--
``(i) Automatic reduction on pro rata
basis.--If, on the basis of the audit described
in subparagraph (A), the Commission determines
that the amount anticipated to be available in
the Fund with respect to the election cycle
involved is not, or may not be, sufficient to
satisfy the full entitlements of participating
candidates to payments under this title for
such election cycle, the Commission shall
reduce each amount which would otherwise be
paid to a participating candidate under this
title by such pro rata amount as may be
necessary to ensure that the aggregate amount
of payments anticipated to be made with respect
to the election cycle will not exceed the
amount anticipated to be available for such
payments in the Fund with respect to such
election cycle.
``(ii) Restoration of reductions in case of
availability of sufficient funds during
election cycle.--If, after reducing the amounts
paid to participating candidates with respect
to an election cycle under clause (i), the
Commission determines that there are sufficient
amounts in the Fund to restore the amount by
which such payments were reduced (or any
portion thereof), to the extent that such
amounts are available, the Commission may make
a payment on a pro rata basis to each such
participating candidate with respect to the
election cycle in the amount by which such
candidate's payments were reduced under clause
(i) (or any portion thereof, as the case may
be).
``(iii) No use of amounts from other
sources.--In any case in which the Commission
determines that there are insufficient moneys
in the Fund to make payments to participating
candidates under this title, moneys shall not
be made available from any other source for the
purpose of making such payments.
``(d) Use of Fund To Make Other Payments.--In addition to the use
described in subsection (d), amounts in the Fund shall be available
without further appropriation or fiscal year limitation--
``(1) to make payments to States under the My Voice Voucher
Program under the Government By the People Act of 2021, subject
to reductions under section 5101(f)(3) of such Act;
``(2) to make payments to candidates under chapter 95 of
subtitle H of the Internal Revenue Code of 1986, subject to
reductions under section 9013(b) of such Code; and
``(3) to make payments to candidates under chapter 96 of
subtitle H of the Internal Revenue Code of 1986, subject to
reductions under section 9043(b) of such Code.
``(e) No Taxpayer Funds Permitted.--No taxpayer funds may be
deposited into the Fund.
``(f) Effective Date.--This section shall take effect on the date
of the enactment of this title.
``SEC. 542. REVIEWS AND REPORTS BY GOVERNMENT ACCOUNTABILITY OFFICE.
``(a) Review of Small Dollar Financing.--
``(1) In general.--After each regularly scheduled general
election for Federal office, the Comptroller General of the
United States shall conduct a comprehensive review of the Small
Dollar financing program under this title, including--
``(A) the maximum and minimum dollar amounts of
qualified small dollar contributions under section 504;
``(B) the number and value of qualified small
dollar contributions a candidate is required to obtain
under section 512(a) to be eligible for certification
as a participating candidate;
``(C) the maximum amount of payments a candidate
may receive under this title;
``(D) the overall satisfaction of participating
candidates and the American public with the program;
``(E) the extent to which the program increased
opportunities for participation by candidates of
diverse racial, gender, and socio-economic backgrounds;
and
``(F) such other matters relating to financing of
campaigns as the Comptroller General determines are
appropriate.
``(2) Criteria for review.--In conducting the review under
subparagraph (A), the Comptroller General shall consider the
following:
``(A) Qualified small dollar contributions.--
Whether the number and dollar amounts of qualified
small dollar contributions required strikes an
appropriate balance regarding the importance of voter
involvement, the need to assure adequate incentives for
participating, and fiscal responsibility, taking into
consideration the number of primary and general
election participating candidates, the electoral
performance of those candidates, program cost, and any
other information the Comptroller General determines is
appropriate.
``(B) Review of payment levels.--Whether the
totality of the amount of funds allowed to be raised by
participating candidates (including through qualified
small dollar contributions) and payments under this
title are sufficient for voters in each State to learn
about the candidates to cast an informed vote, taking
into account the historic amount of spending by winning
candidates, media costs, primary election dates, and
any other information the Comptroller General
determines is appropriate.
``(3) Recommendations for adjustment of amounts.--Based on
the review conducted under subparagraph (A), the Comptroller
General may recommend to Congress adjustments of the following
amounts:
``(A) The number and value of qualified small
dollar contributions a candidate is required to obtain
under section 512(a) to be eligible for certification
as a participating candidate.
``(B) The maximum amount of payments a candidate
may receive under this title.
``(b) Reports.--Not later than each June 1 which follows a
regularly scheduled general election for Federal office for which
payments were made under this title, the Comptroller General shall
submit to the Committee on House Administration of the House of
Representatives a report--
``(1) containing an analysis of the review conducted under
subsection (a), including a detailed statement of Comptroller
General's findings, conclusions, and recommendations based on
such review, including any recommendations for adjustments of
amounts described in subsection (a)(3); and
``(2) documenting, evaluating, and making recommendations
relating to the administrative implementation and enforcement
of the provisions of this title.
``(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the purposes of
this section.
``SEC. 543. ADMINISTRATION BY COMMISSION.
``The Commission shall prescribe regulations to carry out the
purposes of this title, including regulations to establish procedures
for--
``(1) verifying the amount of qualified small dollar
contributions with respect to a candidate;
``(2) effectively and efficiently monitoring and enforcing
the limits on the raising of qualified small dollar
contributions;
``(3) effectively and efficiently monitoring and enforcing
the limits on the use of personal funds by participating
candidates; and
``(4) monitoring the use of allocations from the Freedom
From Influence Fund established under section 541 and matching
contributions under this title through audits of not fewer than
\1/10\ (or, in the case of the first 3 election cycles during
which the program under this title is in effect, not fewer than
\1/3\) of all participating candidates or other mechanisms.
``SEC. 544. VIOLATIONS AND PENALTIES.
``(a) Civil Penalty for Violation of Contribution and Expenditure
Requirements.--If a candidate who has been certified as a participating
candidate accepts a contribution or makes an expenditure that is
prohibited under section 521, the Commission may assess a civil penalty
against the candidate in an amount that is not more than 3 times the
amount of the contribution or expenditure. Any amounts collected under
this subsection shall be deposited into the Freedom From Influence Fund
established under section 541.
``(b) Repayment for Improper Use of Freedom From Influence Fund.--
``(1) In general.--If the Commission determines that any
payment made to a participating candidate was not used as
provided for in this title or that a participating candidate
has violated any of the dates for remission of funds contained
in this title, the Commission shall so notify the candidate and
the candidate shall pay to the Fund an amount equal to--
``(A) the amount of payments so used or not
remitted, as appropriate; and
``(B) interest on any such amounts (at a rate
determined by the Commission).
``(2) Other action not precluded.--Any action by the
Commission in accordance with this subsection shall not
preclude enforcement proceedings by the Commission in
accordance with section 309(a), including a referral by the
Commission to the Attorney General in the case of an apparent
knowing and willful violation of this title.
``(c) Prohibiting Certain Candidates From Qualifying as
Participating Candidates.--
``(1) Candidates with multiple civil penalties.--If the
Commission assesses 3 or more civil penalties under subsection
(a) against a candidate (with respect to either a single
election or multiple elections), the Commission may refuse to
certify the candidate as a participating candidate under this
title with respect to any subsequent election, except that if
each of the penalties were assessed as the result of a knowing
and willful violation of any provision of this Act, the
candidate is not eligible to be certified as a participating
candidate under this title with respect to any subsequent
election.
``(2) Candidates subject to criminal penalty.--A candidate
is not eligible to be certified as a participating candidate
under this title with respect to an election if a penalty has
been assessed against the candidate under section 309(d) with
respect to any previous election.
``(d) Imposition of Criminal Penalties.--For criminal penalties for
the failure of a participating candidate to comply with the
requirements of this title, see section 309(d).
``SEC. 545. APPEALS PROCESS.
``(a) Review of Actions.--Any action by the Commission in carrying
out this title shall be subject to review by the United States Court of
Appeals for the District of Columbia upon petition filed in the Court
not later than 30 days after the Commission takes the action for which
the review is sought.
``(b) Procedures.--The provisions of chapter 7 of title 5, United
States Code, apply to judicial review under this section.
``SEC. 546. INDEXING OF AMOUNTS.
``(a) Indexing.--In any calendar year after 2026, section
315(c)(1)(B) shall apply to each amount described in subsection (b) in
the same manner as such section applies to the limitations established
under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such
section, except that for purposes of applying such section to the
amounts described in subsection (b), the `base period' shall be 2026.
``(b) Amounts Described.--The amounts described in this subsection
are as follows:
``(1) The amount referred to in section 502(b)(1) (relating
to the minimum amount of qualified small dollar contributions
included in a request for payment).
``(2) The amounts referred to in section 504(a)(1)
(relating to the amount of a qualified small dollar
contribution).
``(3) The amount referred to in section 512(a)(2) (relating
to the total dollar amount of qualified small dollar
contributions).
``(4) The amount referred to in section 521(a)(5) (relating
to the aggregate amount of contributions a participating
candidate may accept from any individual with respect to an
election).
``(5) The amount referred to in section 521(b)(1)(A)
(relating to the amount of personal funds that may be used by a
candidate who is certified as a participating candidate).
``(6) The amounts referred to in section 524(a)(2)
(relating to the amount of unspent funds a candidate may retain
for use in the next election cycle).
``(7) The amount referred to in section 532(a)(3) (relating
to the total dollar amount of qualified small dollar
contributions for a candidate seeking an additional payment
under subtitle D).
``(8) The amount referred to in section 533(b) (relating to
the limit on the amount of an additional payment made to a
candidate under subtitle D).
``SEC. 547. ELECTION CYCLE DEFINED.
``In this title, the term `election cycle' means, with respect to
an election for an office, the period beginning on the day after the
date of the most recent general election for that office (or, if the
general election resulted in a runoff election, the date of the runoff
election) and ending on the date of the next general election for that
office (or, if the general election resulted in a runoff election, the
date of the runoff election).''.
SEC. 202. CONTRIBUTIONS AND EXPENDITURES BY MULTICANDIDATE AND
POLITICAL PARTY COMMITTEES ON BEHALF OF PARTICIPATING
CANDIDATES.
(a) Authorizing Contributions Only From Separate Accounts
Consisting of Qualified Small Dollar Contributions.--Section 315(a) of
the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(a)) is
amended by adding at the end the following new paragraph:
``(10) In the case of a multicandidate political committee or any
political committee of a political party, the committee may make a
contribution to a candidate who is a participating candidate under
title V with respect to an election only if the contribution is paid
from a separate, segregated account of the committee which consists
solely of contributions which meet the following requirements:
``(A) Each such contribution is in an amount which meets
the requirements for the amount of a qualified small dollar
contribution under section 504(a)(1) with respect to the
election involved.
``(B) Each such contribution is made by an individual who
is not otherwise prohibited from making a contribution under
this Act.
``(C) The individual who makes the contribution does not
make contributions to the committee during the year in an
aggregate amount that exceeds the limit described in section
504(a)(1).''.
(b) Permitting Unlimited Coordinated Expenditures From Small Dollar
Sources by Political Parties.--Section 315(d) of such Act (52 U.S.C.
30116(d)) is amended--
(1) in paragraph (3), by striking ``The national
committee'' and inserting ``Except as provided in paragraph
(6), the national committee''; and
(2) by adding at the end the following new paragraph:
``(6) The limits described in paragraph (3) do not apply in the
case of expenditures in connection with the general election campaign
of a candidate for the office of Representative in, or Delegate or
Resident Commissioner to, the Congress who is a participating candidate
under title V with respect to the election, but only if--
``(A) the expenditures are paid from a separate, segregated
account of the committee which is described in subsection
(a)(10); and
``(B) the expenditures are the sole source of funding
provided by the committee to the candidate.''.
SEC. 203. PROHIBITING USE OF CONTRIBUTIONS BY PARTICIPATING CANDIDATES
FOR PURPOSES OTHER THAN CAMPAIGN FOR ELECTION.
Section 313 of the Federal Election Campaign Act of 1971 (52 U.S.C.
30114) is amended by adding at the end the following new subsection:
``(d) Restrictions on Permitted Uses of Funds by Candidates
Receiving Small Dollar Financing.--Notwithstanding paragraph (2), (3),
or (4) of subsection (a), if a candidate for election for the office of
Representative in, or Delegate or Resident Commissioner to, the
Congress is certified as a participating candidate under title V with
respect to the election, any contribution which the candidate is
permitted to accept under such title may be used only for authorized
expenditures in connection with the candidate's campaign for such
office, subject to section 503(b).''.
SEC. 204. ASSESSMENTS AGAINST FINES AND PENALTIES.
(a) Assessments Relating to Criminal Offenses.--
(1) In general.--Chapter 201 of title 18, United States
Code, is amended by adding at the end the following new
section:
``Sec. 3015. Special assessments for Freedom From Influence Fund
``(a) Assessments.--
``(1) Convictions of crimes.--In addition to any assessment
imposed under this chapter, the court shall assess on any
organizational defendant or any defendant who is a corporate
officer or person with equivalent authority in any other
organization who is convicted of a criminal offense under
Federal law an amount equal to 4.75 percent of any fine imposed
on that defendant in the sentence imposed for that conviction.
``(2) Settlements.--The court shall assess on any
organizational defendant or defendant who is a corporate
officer or person with equivalent authority in any other
organization who has entered into a settlement agreement or
consent decree with the United States in satisfaction of any
allegation that the defendant committed a criminal offense
under Federal law an amount equal to 4.75 percent of the amount
of the settlement.
``(b) Manner of Collection.--An amount assessed under subsection
(a) shall be collected in the manner in which fines are collected in
criminal cases.
``(c) Transfers.--In a manner consistent with section 3302(b) of
title 31, there shall be transferred from the General Fund of the
Treasury to the Freedom From Influence Fund under section 541 of the
Federal Election Campaign Act of 1971 an amount equal to the amount of
the assessments collected under this section.''.
(2) Clerical amendment.--The table of sections of chapter
201 of title 18, United States Code, is amended by adding at
the end the following:
``3015. Special assessments for Freedom From Influence Fund.''.
(b) Assessments Relating to Civil Penalties.--
(1) In general.--Chapter 97 of title 31, United States
Code, is amended by adding at the end the following new
section:
``Sec. 9706. Special assessments for Freedom From Influence Fund
``(a) Assessments.--
``(1) Civil penalties.--Any entity of the Federal
Government which is authorized under any law, rule, or
regulation to impose a civil penalty shall assess on each
person, other than a natural person who is not a corporate
officer or person with equivalent authority in any other
organization, on whom such a penalty is imposed an amount equal
to 4.75 percent of the amount of the penalty.
``(2) Administrative penalties.--Any entity of the Federal
Government which is authorized under any law, rule, or
regulation to impose an administrative penalty shall assess on
each person, other than a natural person who is not a corporate
officer or person with equivalent authority in any other
organization, on whom such a penalty is imposed an amount equal
to 4.75 percent of the amount of the penalty.
``(3) Settlements.--Any entity of the Federal Government
which is authorized under any law, rule, or regulation to enter
into a settlement agreement or consent decree with any person,
other than a natural person who is not a corporate officer or
person with equivalent authority in any other organization, in
satisfaction of any allegation of an action or omission by the
person which would be subject to a civil penalty or
administrative penalty shall assess on such person an amount
equal to 4.75 percent of the amount of the settlement.
``(b) Manner of Collection.--An amount assessed under subsection
(a) shall be collected--
``(1) in the case of an amount assessed under paragraph (1)
of such subsection, in the manner in which civil penalties are
collected by the entity of the Federal Government involved;
``(2) in the case of an amount assessed under paragraph (2)
of such subsection, in the manner in which administrative
penalties are collected by the entity of the Federal Government
involved; and
``(3) in the case of an amount assessed under paragraph (3)
of such subsection, in the manner in which amounts are
collected pursuant to settlement agreements or consent decrees
entered into by the entity of the Federal Government involved.
``(c) Transfers.--In a manner consistent with section 3302(b) of
this title, there shall be transferred from the General Fund of the
Treasury to the Freedom From Influence Fund under section 541 of the
Federal Election Campaign Act of 1971 an amount equal to the amount of
the assessments collected under this section.
``(d) Exception for Penalties and Settlements Under Authority of
the Internal Revenue Code of 1986.--
``(1) In general.--No assessment shall be made under
subsection (a) with respect to any civil or administrative
penalty imposed, or any settlement agreement or consent decree
entered into, under the authority of the Internal Revenue Code
of 1986.
``(2) Cross reference.--For application of special
assessments for the Freedom From Influence Fund with respect to
certain penalties under the Internal Revenue Code of 1986, see
section 6761 of the Internal Revenue Code of 1986.''.
(2) Clerical amendment.--The table of sections of chapter
97 of title 31, United States Code, is amended by adding at the
end the following:
``9706. Special assessments for Freedom From Influence Fund.''.
(c) Assessments Relating to Certain Penalties Under the Internal
Revenue Code of 1986.--
(1) In general.--Chapter 68 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter D--Special Assessments for Freedom From Influence Fund
``SEC. 6761. SPECIAL ASSESSMENTS FOR FREEDOM FROM INFLUENCE FUND.
``(a) In General.--Each person required to pay a covered penalty
shall pay an additional amount equal to 4.75 percent of the amount of
such penalty.
``(b) Covered Penalty.--For purposes of this section, the term
`covered penalty' means any addition to tax, additional amount,
penalty, or other liability provided under subchapter A or B.
``(c) Exception for Certain Individuals.--
``(1) In general.--In the case of a taxpayer who is an
individual, subsection (a) shall not apply to any covered
penalty if such taxpayer is an exempt taxpayer for the taxable
year for which such covered penalty is assessed.
``(2) Exempt taxpayer.--For purposes of this subsection, a
taxpayer is an exempt taxpayer for any taxable year if the
taxable income of such taxpayer for such taxable year does not
exceed the dollar amount at which begins the highest rate
bracket in effect under section 1 with respect to such taxpayer
for such taxable year.
``(d) Application of Certain Rules.--Except as provided in
subsection (e), the additional amount determined under subsection (a)
shall be treated for purposes of this title in the same manner as the
covered penalty to which such additional amount relates.
``(e) Transfer to Freedom From Influence Fund.--The Secretary shall
deposit any additional amount under subsection (a) in the General Fund
of the Treasury and shall transfer from such General Fund to the
Freedom From Influence Fund established under section 541 of the
Federal Election Campaign Act of 1971 an amount equal to the amounts so
deposited (and, notwithstanding subsection (d), such additional amount
shall not be the basis for any deposit, transfer, credit,
appropriation, or any other payment, to any other trust fund or
account). Rules similar to the rules of section 9601 shall apply for
purposes of this subsection.''.
(2) Clerical amendment.--The table of subchapters for
chapter 68 of such Code is amended by adding at the end the
following new item:
``subchapter d--special assessments for freedom from influence fund''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
convictions, agreements, and penalties which occur on or after
the date of the enactment of this Act.
(2) Assessments relating to certain penalties under the
internal revenue code of 1986.--The amendments made by
subsection (c) shall apply to covered penalties assessed after
the date of the enactment of this Act.
SEC. 205. STUDY AND REPORT ON SMALL DOLLAR FINANCING PROGRAM.
(a) Study and Report.--Not later than 2 years after the completion
of the first election cycle in which the program established under
title V of the Federal Election Campaign Act of 1971, as added by
section 201, is in effect, the Federal Election Commission shall--
(1) assess--
(A) the amount of payment referred to in section
501 of such Act; and
(B) the amount of a qualified small dollar
contribution referred to in section 504(a)(1) of such
Act; and
(2) submit to Congress a report that discusses whether such
amounts are sufficient to meet the goals of the program.
(b) Update.--The Commission shall update and revise the study and
report required by subsection (a) on a biennial basis.
(c) Termination.--The requirements of this section shall terminate
10 years after the date on which the first study and report required by
subsection (a) is submitted to Congress.
SEC. 206. EFFECTIVE DATE.
(a) In General.--Except as may otherwise be provided in this title
and in the amendments made by this title, this title and the amendments
made by this title shall apply with respect to elections occurring
during 2030 or any succeeding year, without regard to whether or not
the Federal Election Commission has promulgated the final regulations
necessary to carry out this title and the amendments made by this title
by the deadline set forth in subsection (b).
(b) Deadline for Regulations.--Not later than June 30, 2028, the
Federal Election Commission shall promulgate such regulations as may be
necessary to carry out this title and the amendments made by this
title.
<all>Official legislative text sourced from the public record (cached on CivicsHQ).
Official source
View the original bill, actions, and full legislative record on Congress.gov.
Status
In Committee
- 1Introduced
- 2Committee
- 3Floor
- 4Passed
- 5Signed
Timeline reflects current normalized status only. Full action history is not yet stored in the API.
Sponsors
- Rep. Sarbanes, John P. [D-MD-3]DHouseMD
Votes
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